CoinDesk
More than $1.27 billion in crypto derivatives positions were liquidated over 24 hours, including more than $1.1 billion in bullish bets, as leverage deepened a broader risk-off move. Spot Bitcoin ETFs recorded $430.2 million in net outflows on Thursday, leaving institutional demand unable to fill the gap. Bitcoin has lost the 50-week EMA, currently near $78,400, and is testing $75,000 as key weekly support.
Why it matters
The selloff reached well beyond crypto. The Nasdaq fell 5.5% on Thursday, its worst session since April 2025, while South Korea's Kospi dropped as much as 8.8% before a 20-minute trading halt. The broader CoinDesk 20 index fell 6.17% over the same period as pressure on the AI trade spread across risk assets.
With Democrats controlling both chambers of Congress, investors are concerned that stronger opposition to data-center construction could slow the AI buildout. That matters for Bitcoin miners that have pivoted to AI computing, linking Bitcoin's risk profile more closely to the AI trade and its policy risks. Carlos Guzman, vice president of research at GSR, called the move "a pullback in risk appetite amplified by leverage."
Market impact
Spot ETF outflows show that institutional demand is not stepping in to absorb the decline. Bitfinex analysts had warned that "sustaining this bounce requires actual spot demand." Without that demand, leverage liquidation can extend the move even as Bitcoin tests the $75,000 weekly level.
A weekly close below the 50-week EMA would typically signal a medium-term break in the bullish trend, although the absence of RSI divergences remains constructive. Wintermute OTC trader Jasper De Maere sees $73,000 and $68,000 as potential downside targets and says Bitcoin needs to reclaim and hold $80,000 to signal renewed strength. The October jobs report is due Friday, with economists expecting 59,000 to 65,000 jobs, up from 29,000 in September. Markets are pricing roughly a 70% chance of a December Fed hike, so a strong reading could add further pressure.
Frequently asked questions
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How much of the crypto liquidations came from bullish positions?
More than $1.1B of the over $1.27B liquidated in 24 hours were bullish bets. GSR described the result as a pullback in risk appetite amplified by leverage.
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Did spot Bitcoin ETF demand cushion the selloff?
No. Spot Bitcoin ETFs recorded $430.2M in net outflows Thursday, leaving institutional demand unable to fill the gap created by derivatives liquidations.
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Which technical levels could shape Bitcoin's next move?
Bitcoin has lost the 50-week EMA near $78.4K and is testing $75K weekly support. Wintermute sees $73K and $68K as downside targets, while reclaiming and holding $80K would signal renewed strength.
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How could the October jobs report change rate expectations?
Economists expect 59,000 to 65,000 jobs versus 29,000 in September. Markets are pricing roughly a 70% chance of a December Fed hike, and a strong report could add pressure.
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Why do AI politics matter to Bitcoin miners?
Democrats now control both chambers, and investors worry that stronger opposition to data-center construction could slow the AI buildout. Many Bitcoin miners have pivoted to AI computing, leaving them exposed to that slowdown.
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